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Smart Summary

Factual and Procedural Background

This is an application under Order 1, Rule 10(2) read with Section 151 of the Code of Civil Procedure, 1908, filed by the Alipur Estates Residents' Welfare Association. The plaintiff purchased Unit No. 12 at 10, Alipur Road, Civil Lines, Delhi from defendant No. 1 and claimed exclusive rights to use the lawns adjoining the unit. The plaintiff's claim is based on an agreement to sell executed on 20th September 1993 and a subsequent letter allegedly granting exclusive use of the lawn. The agreement contained clauses stating that all buyers have proportional shares in the land and no exclusive rights over common areas. The defendants include other owners within the same plot. The suit was initially for a declaration of exclusive rights, with an interim injunction sought to maintain status quo. The court observed potential obstacles to maintainability and appointed Local Commissioners to report on alleged violations of status quo by the plaintiff. The Alipur Estate Residents' Welfare Association applied for impleadment as a party, asserting it represents the owners' collective interest under the Delhi Apartment Ownership Act, 1986.

Legal Issues Presented

  1. Whether the plaintiff has exclusive rights over the lawns adjoining Unit No. 12 contrary to the terms of the agreement to sell and the Delhi Apartment Ownership Act, 1986.
  2. Whether the Alipur Estates Residents' Welfare Association has a direct and sufficient interest to be impleaded as a party to the suit.
  3. Whether the suit as filed, including the prayer for declaration and interim relief, is maintainable in its present form.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff claims exclusive rights to use the lawns at the back and side of Unit No. 12 based on a letter exchanged with defendant No. 1 after the agreement to sell.
  • Relies on the legal efficacy of the letter to assert exclusive user rights despite the agreement clauses.

Defendants' Arguments

  • The defendants rely on the clauses in the agreement to sell, which provide that buyers have proportional shares in the land and no exclusive rights over common or open spaces.
  • Defendants Nos. 2 and 3 contend that the plaintiff violated the status quo, as supported by Local Commissioners' reports.

Applicant (Alipur Estates Residents' Welfare Association) Arguments

  • The Association asserts it is a registered society constituted under the Delhi Apartment Ownership Act, 1986, representing the collective interests of the owners.
  • Claims a direct and equitable interest in the subject matter of the suit to protect common areas and prevent dilution of other owners' rights.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Razia Begum v. Sahebzadi Anwar Begum, AIR 1958 SC 886 Principle that an applicant for impleadment must have a direct interest in the subject matter of the suit. The Court applied this principle to hold that the Alipur Estates Residents' Welfare Association has a direct and equitable interest warranting impleadment.
Tulsi Devi v. Municipal Corporation of Delhi, 27 (1985) DLT 408 Legal basis for allowing impleadment of parties with a direct interest to enable complete adjudication. The Court relied on this decision to justify allowing the Association to be impleaded as defendant No. 4.
G.M.V Krishnamachari v. M.D Dhanalakshmi Ammal, AIR 1968 Madras 142 Supporting precedent for impleadment of interested parties to ensure comprehensive resolution. Used to reinforce the decision to permit the Association’s impleadment for effective adjudication.

Court's Reasoning and Analysis

The Court analyzed the agreement to sell which explicitly denied any exclusive rights over common or open spaces, emphasizing proportional ownership among buyers. It found that the plaintiff’s claim depended on a subsequent letter that purportedly granted exclusive rights, but this private arrangement conflicted with the statutory framework under the Delhi Apartment Ownership Act, 1986. The Court observed that such an arrangement would undermine the rights of other owners in the common areas, which the Act seeks to protect through collective ownership and management via an owners’ association. The plaintiff’s alteration of the status quo was noted and addressed through appointment of Local Commissioners. Regarding impleadment, the Court applied settled legal principles that an applicant with a direct or equitable interest in the matter should be allowed to join the proceedings to ensure complete adjudication. The Alipur Estates Residents' Welfare Association was found to have such an interest as a representative body of owners under the Act, and thus impleadment was necessary to protect collective interests and settle all questions in the suit.

Holding and Implications

The application for impleadment filed by the Alipur Estates Residents' Welfare Association is allowed.

The Association is impleaded as defendant No. 4, and the amended memo of parties is to be filed accordingly. The decision ensures that the collective interests of the owners under the Delhi Apartment Ownership Act, 1986 are represented in the suit. No broader precedent beyond the immediate procedural order was set by this ruling.

    Om Parkash Charaya v. Ashok Kamal Capital Builders Pvt. Ltd.

    Vikramajit Sen, J.— This is an application under Order 1, Rule 10(2) read with Section 151 of the Code of Civil Procedure, 1908, filed by the Alipur Estates Residents' Welfare Association. This suit is for the passing of a decree declaring “that the plaintiff has the exclusive rights to use the lawns at the back of the Unit No. 12 situated on the ground floor at 10, Alipur Road, Civil Lines, Delhi upto boundary wall of the plot at the back between the boundary wall of the Unit No. 12 as per site plan attached for all times to come in any manner. Similarly the plaintiff has the exclusive right to use the available lawns, lawn which is by the side facing the main Alipur Road, Civil Lines, Delhi, upto the boundary wall of the main Alipur Road, Delhi and between the boundary of Unit No. 12 to the side facing main Alipur Road, Delhi as per plan attached and that the defendants have no right to trespass on these lawns in any manner whatsoever.

    2. A perusal of the plaint discloses that the plaintiff had purchased the immovable property from defendant No. 1 in 10, Alipur Road, Delhi. Defendant Nos. 2 and 3 are also other owners of other properties/flats within the same plot. The plaintiff has asserted that the agreement to sell had been executed in his favour on 20th September, 1993. Two clauses of the Agreement to Sell extracted below are relevant and demolish the claim of the plaintiff that special and exclusive rights of user had been created in his favour. They also demolish the opposition to the application on behalf of the plaintiff.

    “2(f). That all the buyers of different residential units shall have share in the land exactly in the proportion to the area of their residential unit/flat to the total covered area under the residential units within the Builder Site.

    9(a). The Buyers shall have no exclusive claim, right or title whatsoever in respect of any open spaces, or any other space not specifically allotted to him, the uncovered portion of Builders Site of the plot on which the proposed building is to be constructed shall however, be available for common use of all dwelling units and shall be dealt with in accordance with the Delhi Apartment Ownership Act, 1986 or in accordance with any other law and mutual consent of all allottees of dwelling units. The Buyers shall not be entitled to claim a separate exclusive demarcation/partition/right or use to any part of the said area or to any area in the said plot not specifically allotted to him.”

    3. It is the plaintiff's case that after the execution of the said agreement to sell, portions of which have been extracted above, a letter was exchanged between him and defendant No. 1 by which exclusive rights to use the lawn (land) at the back of his unit upto boundary wall of plot at the back between the boundary of the premises. The plaintiff's case rests almost entirely on the legal efficacy of this letter.

    4. Although an interim injunction has been prayed for in an application under Order XXXIX filed with the plaint, which is, therefore, intrinsically in the nature of consequential relief, the suit has been filed for only a declaration simplicitor. Court fee of only Rs. 20/- (Rupees twenty only) has been affixed. However, whether the suit is maintainable in its present form is a matter which would be gone into on subsequent hearings. Prima facie, however, there does appear to be an obstacle in the maintainability of the suit and in its entertainment. When the case was heard for the first time, that is on 2nd February, 1995, the parties were directed to maintain status quo in the matter of possession over the suit property. On the next date Counsel for the defendant Nos. 2 and 3 pointed out that the plaintiff was altering the status quo and hence a Local Commissioner was appointed immediately. The report of the Local Commissioner dated 23rd February, 1995 substantiates these allegations against the plaintiff. The order directing maintenance of status quo is again repeated on 8th August, 1997 when a Local Commissioner was again appointed.

    5. The application for impleadment had been filed by Alipur Estate Residents' Welfare Association. Its Secretary has sworn an affidavit to the effect that the applicant has been registered with the Registrar of Societies and that it is duly constituted in terms of the Delhi Apartment Ownership Act, 1986. Its memorandum and article of association have been filed and a perusal thereof supports the contention that it was incorporated exclusively for the protection of the property and the interests of the sundry owners. At the present stage I do not find it appropriate to return a finding on the applicability of the Delhi Apartment Ownership Act, or whether Rules have been framed under the statute, and also promulgated. The intention of the legislature is clear—where apartments have been constructed, there is common ownership over common areas, and the best watch-dog is the Association/Society constituted by the majority of the owners. This intendment must be implemented in its true spirit.

    6. In deciding applications for impleadment, all that is to be seen is whether the applicant has a direct interest in the subject-matter in dispute. This proposition has been settled, almost half of century ago by the decision of the Supreme Court in Razia Begum v. Sahebzadi Anwar Begum, AIR 1958 SC 886. There is yet another stream of legal opinion to the effect that the interest that should exist in favour of the applicant need not mandatorily be exclusively a legal interest, but may also include an equitable interest. In the present case I am satisfied that the applicant, in fact, has a direct interest in the subject-matter of the suit. It certainly has an equitable interest.

    7. The plaintiff is one of many other owners of flats constructed on 10, Alipur Road, Civil Lines, Delhi. As per the agreement to sell executed in his favour he has an exclusive right over the residential Unit No. 12 (L.G). This is not an absolute right but is circumscribed by the clauses which have already been extracted above. It is obvious that the plaintiff as well as the Builder, defendant No. 1, who is now conveniently not defending the suit, were mindful of this limited interest. This could have been the only reason why a secret arrangement was subsequently arrived at between them. Prima facie, this private agreement seeks to take away, dilute and extinguish the right of other owners in the common areas of the said plot. Inasmuch as it attempts to fix exclusive rights over common areas in favour of the plaintiff, in defeat of the rights as contemplated and envisaged in the Delhi Apartment Ownership Act, 1986, other owners are directly interested in the relief claimed by the plaintiff. The said Association, the applicant before the Court, is a representative body comprising the various owners and a body contemplated in the Delhi Apartment Ownership Act. Prima facie it undisputedly has a direct interest in the relief claimed in the suit.

    8. I am satisfied that it is necessary for the determination of the relief matter in dispute and to enable the Court factually and completely to adjudicate upon and settle all questions involved in the suit, to permit the applicant to join the proceedings. Learned Counsel for the applicant has correctly relied on the decision of this Court in Tulsi Devi v. Municipal Corporation of Delhi, 27 (1985) Delhi Law Times 408; and G.M.V Krishnamachari v. M.D Dhanalakshmi Ammal, AIR 1968 Madras 142, to press that the application be allowed. The application is accordingly allowed.

    9. The applicant is impleaded as defendant No. 4. Amended Memo of Parties be filed accordingly.

    Application allowed.
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    Comments

    Om Parkash Charaya v. Ashok Kamal Capital Builders Pvt. Ltd.
    (Aug 9, 2000)